Maria Elizabeth Montero Leon v. Guillermo Montero

Summary

The United States District Court for the Central District of California denied Guillermo Montero’s motion to withdraw the reference of a bankruptcy-court adversary proceeding. The court held that the motion was untimely because Defendant had notice of the grounds for withdrawal and had actively litigated in bankruptcy court before seeking withdrawal. The action was referred back to the United States Bankruptcy Court.

Holdings

1. A motion to withdraw reference must be made as promptly as possible and at the first reasonable opportunity after the movant has notice of the grounds for withdrawal; a significant delay may render the motion untimely.
2. Defendant's motion to withdraw the reference was untimely because Defendant had notice of possible grounds for withdrawal, continued to litigate in the bankruptcy court, and delayed filing the motion.

Questions Presented

1. Whether Defendant's motion to withdraw the reference was timely under 28 U.S.C. § 157(d).
2. Whether Defendant's participation in the bankruptcy adversary proceeding and delay in seeking withdrawal required denial of the motion.

Disposition

other